Latest news with #VCF
Yahoo
2 days ago
- Business
- Yahoo
Broadcom takes a private cloud victory lap as it axes bottom-tier VMware partners
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Broadcom touted success in moving enterprise customers to the VMware Cloud Foundation private cloud platform during a Thursday earnings call, less than a week after eliminating the bottom tier of its technology partner program. The tech giant has converted 87% of its 10,000 largest customers to the VCF bundled offering since finalizing the $61 billion VMware acquisition in November 2023, according to CEO Hock Tan. 'The momentum from strong VCF sales over the past 18 months since the acquisition of VMware has created annual recurring revenue, otherwise known as ARR, growth of double digits in our core infrastructure software,' Tan said. Broadcom's infrastructure software segment revenue increased 25% year over year, accounting for $6.6 billion of $15 billion in total Q2 2025 revenue, CFO and Chief Accounting Officer Kirsten Spears said during the call. The company's semiconductor segment yielded $8.4 billion, accounting for 56% of total quarterly revenue. Broadcom shook up the VMware ecosphere in the year following the acquisition, rolling out major changes to the virtualization software company's product line, licensing policies and pricing model. Bundling thousands of individual offerings into an integrated private cloud alternative to hyperscaler services was central to the strategy. 'Customers are increasingly turning to VCF to create a modernized private cloud on-prem, which will enable them to repatriate workloads from public clouds while being able to run modern container-based applications and AI applications,' Tan said Thursday. The company identified a surge in private cloud interest among 1,800 IT decision-makers surveyed by research firm Illuminas in a report published last month. More than half of respondents said deploying new workloads in private cloud in the next three years was a priority and one-third had already shifted some public cloud workloads to an on-prem platform. 'Organizations feel that public cloud spending is getting out of hand and they're rethinking their cloud strategy, repatriating workloads onto the private cloud to drive better security and cost predictability,' Prashanth Shenoy, VP of product marketing in the VCF division at Broadcom, said during a May briefing. After an initial post-acquisition shock to the VMware partner ecosystem, which required more than 18,000 resellers to shift to the Broadcom Advantage program, the company leaned on partnerships to help drive VCF adoption earlier this year. Broadcom's partner network received another jolt on June 1, when the company reduced the number of authorized VMware resellers in the Americas and Asia-Pacific and Japan regions. 'To enable more focused investment and deeper support for those partners, we are streamlining the Broadcom Advantage Partner Program for VMware Resellers from four tiers to three,' Brian Moats, SVP, global commercial sales and partners at Broadcom, said in a blog post. The change eliminates the Registered tier, which contained 'a large number of partners with minimal engagement,' Laura Falko, head of global partner programs, marketing and experience at Broadcom, said in a Friday email. 'By removing that tier, we are concentrating our support, resources, and incentives around partners who are actively investing in technical certifications, consulting practices and outcome-based services.' Broadcom has given affected partners 60 days to close open customer accounts. The company declined to specify the number of partners or customers impacted, but Falko said the company is actively managing the transitions. 'We've provided our field and distribution teams with the tools and visibility to ensure continuity for customers,' she said, adding, 'This is not a shift away from the channel, it's a move to ensure that every customer interaction is handled by a partner who can deliver real value in a modern, cloud-first IT environment.'
Yahoo
2 days ago
- Business
- Yahoo
Broadcom Q2 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
Broadcom AVGO reported second-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, surpassing the Zacks Consensus Estimate by 0.64% and increasing 43.6% year over revenues increased 20% year over year to $15 billion, surpassing the Zacks Consensus Estimate by 0.37%. Broadcom's revenue growth in the second quarter of fiscal 2025 was driven by strong performance in AI semiconductors and VMware revenues benefited from continued investments from hyperscale partners in AI XPUs and connectivity solutions for AI data shares lost 4.01% in after-hours trading to $249.50 following the fiscal second-quarter results. Broadcom Inc. price-consensus-eps-surprise-chart | Broadcom Inc. Quote Semiconductor solutions revenues (56% of net revenues) totaled $8.4 billion, rising 17% year over year and missing the Zacks Consensus Estimate by 0.17%. AI-related revenues grew 46% year over year to $4.4 billion, which was a major driver of overall revenue growth. This growth was driven by higher shipments of networking solutions to hyperscalers for AI semiconductor revenues declined 5% year over year to $4 the second quarter of fiscal 2025, broadband, enterprise networking and server storage revenues were up revenue was down in the second quarter of fiscal 2025, while wireless revenue also decreased due to software revenues (44% of net revenues) rose 25% year over year to $6.6 billion, bolstered by the successful conversion of enterprise customers to the full VMware Cloud Foundation(VCF) software stack subscription. The non-GAAP gross margin was 79%, expanding 320 basis points (bps) year over and development, as a percentage of net revenues, decreased 210 bps year over year to 10.2%. Selling, general and administrative expenses also decreased 280 bps to 4%.Adjusted EBITDA increased 35% year over year to $10 billion. The adjusted EBITDA margin expanded 720 bps on a year-over-year basis to 66.7%.The non-GAAP operating margin grew 800 bps year over year to 65.3%. As of May 4, 2025, cash and cash equivalents were $9.47 billion compared with $9.31 billion as of Feb. 2, debt (including the current portion of $5.53 billion) was $67.28 billion as of May 4, 2025, compared with $66.58 billion as of Feb. 2, generated $6.55 billion in cash flow from operations compared with $6.11 billion in the previous quarter. The free cash flow was $6.41 billion compared with $6.01 billion in the prior of March 31, 2025, the company paid out a cash dividend of $0.59 per share of common stock, totaling $2.78 billion. For third-quarter fiscal 2025, Broadcom expects revenues of $15.8 billion, suggesting an increase of 21% from the prior-year period's semiconductor revenues are projected to grow 60% year over year to $5.1 billion, whereas non-AI semiconductor revenues are expected to reach $4 Software revenues are expected to grow 16% year over year to $6.7 revenues are anticipated to grow 25% year over year to $9.1 the third quarter of fiscal 2025, enterprise networking and broadband are expected to continue to grow storage, wireless and industrial are expected to be largely EBITDA is expected to be 66% of projected company anticipates the non-GAAP diluted share count to be 4.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Currently, Broadcom carries a Zacks Rank #2 (Buy). Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks shares have gained 33.2% in the year-to-date period. The Zacks Consensus Estimate for APH's full-year 2025 earnings is pegged at $2.66 per share, up by 1.5% over the past 30 days, suggesting growth of 40.74% from the year-ago quarter's reported shares have lost 4.4% in the year-to-date period. The Zacks Consensus Estimate for JNPR's full-year fiscal 2025 earnings has been revised upward to $2.08 in the past 30 days, suggesting year-over-year growth of 20.93%.UPWK shares have lost 7.7% in the year-to-date period. The Zacks Consensus Estimate for UPWK's full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter's levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Upwork Inc. (UPWK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
&w=3840&q=100)
Business Standard
2 days ago
- Business
- Business Standard
Sebi extends timeline of addl liquidation period for VCFs migrating
Markets regulator Sebi on Friday extended the additional liquidation timeline by one year till July 2026 for venture capital funds (VCFs) transitioning to alternative investment funds rules. Sebi, in August 2024, issued modalities and conditions for VCFs to migrate to the Alternative Investment Funds (AIFs) rules. This also allowed VCFs, with at least one scheme not yet wound up after the end of their liquidation period, an additional liquidation period until July 19, 2025, if they migrate to AIF Regulations. Based on industry feedback and to facilitate migration, Sebi has now extended this additional liquidation period to July 19, 2026, according to a circular issued on Friday. A 'Migrated VCF' is a VCF that transitions to become a sub-category of VCF under Category I - Alternative Investment Fund as per the AIF norms. The market watchdog reiterated that VCFs' transition to AIF regulations are given an additional liquidation period till July 19, 2025. On application requirements, Sebi had stated that VCFs wishing to migrate must submit their original registration certificate and specific information as outlined by the regulator. Sebi had stated that after migration, existing investors, investments, and units will be transferred under the AIF Regulations without change. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Yahoo
2 days ago
- Business
- Yahoo
Broadcom Inc (AVGO) Q2 2025 Earnings Call Highlights: Record Revenue and AI Growth Propel ...
Total Revenue: $15 billion, up 20% year-on-year. Adjusted EBITDA: $10 billion, up 35% year-on-year. Semiconductor Revenue: $8.4 billion, up 17% year-on-year. AI Semiconductor Revenue: Over $4.4 billion, up 46% year-on-year. Infrastructure Software Revenue: $6.6 billion, up 25% year-on-year. Gross Margin: 79.4% of revenue. Operating Income: $9.8 billion, up 37% year-on-year. Operating Margin: 65% of revenue. Free Cash Flow: $6.4 billion, representing 43% of revenue. Capital Expenditures: $144 million. Cash and Debt: $9.5 billion in cash and $69.4 billion in gross principal debt. Q3 Revenue Guidance: Approximately $15.8 billion, up 21% year-on-year. Q3 AI Semiconductor Revenue Guidance: $5.1 billion, up 60% year-on-year. Q3 Infrastructure Software Revenue Guidance: Approximately $6.7 billion, up 16% year-on-year. Warning! GuruFocus has detected 5 Warning Signs with RBRK. Release Date: June 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Broadcom Inc (NASDAQ:AVGO) reported a record total revenue of $15 billion for fiscal Q2 2025, marking a 20% year-on-year increase. AI semiconductor revenue reached over $4.4 billion, up 46% year-on-year, continuing a trajectory of nine consecutive quarters of strong growth. Infrastructure software revenue grew by 25% year-on-year to $6.6 billion, driven by the successful integration of VMware and strong VCF sales. The company forecasts AI semiconductor revenue to grow by 60% year-on-year in Q3, marking the tenth consecutive quarter of growth. Broadcom Inc (NASDAQ:AVGO) achieved a gross margin of 79.4% in Q2, better than originally guided, due to favorable product mix. Non-AI semiconductor revenue was down 5% year-on-year, with sectors like industrial and wireless experiencing declines. Free cash flow as a percentage of revenue was impacted by increased interest expenses from debt related to the VMware acquisition. The company anticipates a sequential decline in consolidated gross margin by approximately 130 basis points in Q3 due to a higher mix of XPUs. Broadcom Inc (NASDAQ:AVGO) faces uncertainty regarding potential impacts from changing export control regulations. The transition of VMware customers to a subscription model is ongoing and expected to take another 1.5 years to complete. Q: Can you provide more color on the inference commentary and whether it's more of the XPU side or connectivity side that's driving growth? A: We are seeing increased deployment of XPUs next year, more than we originally thought, along with more networking. It's a combination of both, and we are seeing much more inference now. - Hock Tan, President and CEO Q: Given the positive growth in your AI business, do you see Broadcom sustaining the year-over-year growth rate into fiscal 2026? A: Yes, the growth trajectory we are seeing in fiscal 2025 is expected to sustain into fiscal 2026. We have improved visibility and updates from our hyperscale partners on their AI cluster deployments. - Hock Tan, President and CEO Q: Can you discuss the AI networking performance and the role of Tomahawk in future growth? A: AI networking goes hand-in-hand with AI accelerator cluster deployments. The increased density in scale-up scenarios has surprised us, maintaining AI networking at about 40% of AI revenue. There is strong interest in the new Tomahawk switches, which are expected to drive future growth. - Hock Tan, President and CEO Q: How do you view the competitive landscape with new protocols like NVLink, and what is Broadcom's position on Ethernet for AI networking? A: Ethernet remains the open standard and preferred choice for networking. We believe Ethernet will continue to prevail as it has in traditional networking, and there is no need to create new standards for tasks that can be accomplished with Ethernet. - Hock Tan, President and CEO Q: Can you comment on the progress of converting VMware customers to the subscription model? A: Most VMware contracts are typically three years, and we are more than halfway through the renewals. We expect the conversion process to continue for at least another year to 1.5 years. - Hock Tan, President and CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Hamilton Spectator
3 days ago
- Politics
- Hamilton Spectator
Valemount Council: municipal award, wildfire fuel management, cemetery fees
Valemount Council presented an award to former MLA Shirley Bond, discussed wildfire fuel management, and new cemetery fees during its May 27th regular meeting. Mayor Owen Torgerson called the meeting to order at 7:14 p.m., after the evening's public hearing ended Council adopted the agenda for the night's meeting, and adopted the minutes of its April 22nd regular meeting as well as the May 8th special meeting. Former MLA Shirley Bond has been a familiar face in the Robson Valley for over two decades. She served as MLA for the Prince George-Valemount riding from 2001 until August 2024, when she announced she would not be running for re-election after BC United leader Kevin Falcon suspended the party's election campaign. Throughout her time in office, Bond advocated for improved rural healthcare, education and infrastructure – which is why Valemount councillors voted to give her the Freedom of the Municipality award, the highest honour a B.C. municipality can give to someone. The award recognizes a person's public service and leadership in a community, and dozens of residents packed into Council chambers to watch Torgerson present the award. 'Shirley Bond's illustrious career and her profound connection to the Robson Valley have undoubtedly earned her this distinction,' Torgerson said. 'Her impact is particularly noteworthy in her efforts to enhance rural healthcare, infrastructure and economic development, which are fundamental for the well-being of smaller communities like ours. Shirley has been a tireless advocate for us all.' He added that with the award comes an invitation to every future municipal event, as well as the ability to cast votes in Valemount elections. A tearful Bond thanked councillors and Valemount residents for the recognition. She said Torgerson and the rest of Team Valemount – a group of government and business leaders who advocate for the community at the provincial and federal level – are an example she holds up when speaking about effective political advocacy. 'I can't begin to thank you for the lessons that I've learned about public service because of the honour I've had to represent all of you,' Bond said. 'While I appreciate the honour I was given to represent Prince George-Valemount, what means the most to me is that I know people by name… I think that's what serving is really about. I'm incredibly humbled and deeply honoured, and I'm thrilled that I get to vote in another municipality.' Local mill Cedar Valley Holdings is set to close in June, which will result in the layoff of 14 people. Employees allege that the mill's financial hardship is owed to difficulty in getting an adequate supply of cedar from the Valemount Community Forest (VCF), and claim VCF has been sending usable cedar to pulp mills in Prince George. VCF says it is in compliance with its timber and fibre supply agreements with Cedar Valley, but has not provided a comment on the claims made by the mill. Cedar Valley employee Simon Heiniger began circulating a petition calling for more transparency among the VCF board of directors and a guarantee that local companies are prioritized in timber sales in early May. He presented the petition – which he says has garnered over 300 signatures – to councillors. Council did not have any questions about the petition for Heiniger. 'I just hope that we can hear something expediently and publicly, a public meeting or something,' Heiniger said at the end of his delegation. 'There's been a lot of support on that petition.' Torgerson thanked Heiniger for presenting his petition. Council received his petition for information. BC Wildfire Service proposed a fuel management plan to the Village in early May which suggests clearing hazardous trees and debris along 13th Avenue. Wildfire Service staff could assist with the project during times of low fire activity, clearing the area of crowded trees and picking up debris, according to the staff report. Village staff recommended using up to $10,000 in existing grant funds from the Municipal Insurance Association of BC to rent a wood chipper for the project. Councillor Pete Pearson said he is in support of the fuel management project, but added that it may make more financial sense to purchase a wood chipper, rather than renting it – especially since staff estimate it would cost about $1200 a day. He said he has found several Canadian-made wood chippers which are within the $10,000 budget. 'This is not going to be a one-time thing where we go in and have to do this cleanup,' Pearson said. 'I think it would be beneficial for staff to look at the purchase of a chipper versus a daily rental.' Torgerson asked CAO Anne Yanciw if purchasing a woodchipper would delay the start of the fuel management project, given that the project depends on when BC Wildfire Service staff are available to assist. 'It may,' Yanciw said. 'Another consideration is that someone needs to operate the woodchipper. Our Public Works staff are very busy this time of year.' Pearson said the woodchipper will need an operator regardless of whether it is rented or purchased permanently. 'It's six of one, a half dozen of the other,' he said. 'I think there will be more purposes [for the woodchipper] in this community – chipping Christmas trees as a fundraiser and that kind of thing. I think there's other opportunities, versus throwing rental money out.' Yanciw added that rental of the chipper comes with an operator, whereas Public Works staff will have to learn to operate the chipper themselves if the Village purchases one. Council voted to rent the chipper, with Pearson voting in opposition. Council gave third reading to an updated version of the Village's traffic regulation bylaw. The updates include changing the speed limit on 5th Avenue from 30 kilometres an hour to 40 kilometres an hour, and includes new references to the Bylaw Notice Enforcement and Dispute Adjudication bylaw, which outlines the fines for violating Village bylaws. The bylaw has been reviewed by the Public Works Superintendent and Valemount RCMP, and can be considered for adoption at Council's next meeting on June 10th, according to the staff report. B.C. municipal governments are guided by Official Community Plans, which outline land use practices and long-term objectives for the community. The Village is amending its zoning bylaw in accordance with new provincial legislation on short-term vacation rentals, and staff say the Official Community Plan's section on short-term rentals now has minor inconsistencies with proposed updates to the zoning bylaw. Staff recommended amendments to the Official Community Plan to resolve these inconsistencies. These amendments include allowing two additional dwelling units per lot – the current plan only allows one per lot – and removing the requirement that the owner of a property needs to occupy the principal residence on the property in order to operate a short-term rental on the same lot. Additionally, the current plan does not permit short-term rentals in a detached additional dwelling unit, although this is permitted in the proposed amendments to the zoning bylaw. Staff recommended updating the plan to allow this. Staff have recommended minor updates to the Village's zoning bylaw in response to new provincial legislation. The updates include changing the definition of a minor short-term vacation rental to mean an attached or detached accessory dwelling unit or room in the home. A major short-term vacation rental is only permitted in the principal dwelling on the property, rather than in additional dwelling units, under the updated bylaw. Additionally, staff recommend changing the minimum height of fencing around a home from three feet to four feet, and allowing two additional dwelling units per land parcel, whereas the current bylaw only permits one. Council voted to give third reading to the bylaw. Staff will send the proposed amendments to the Ministry of Transportation for approval. Council gave first and second reading to the updated Cemetery Bylaw. The amendments suggest removing an appendix to the bylaw which includes fees and charges pertaining to the cemetery, since these fees are included in the Village's Fees and Charges Bylaw. New cemetery fees will be in effect this fall when the new columbarium – an area to display cremated remains – is in place, and the Fees and Charges bylaw is being updated to reflect this, according to the staff report. Council gave first and second reading to amendments to the Fees and Charges Bylaw. The amendments add fees previously included in the Cemetery Bylaw to the Fees and Charges Bylaw, which consolidates the Village's fees for using municipal services. Additionally, the amendments add a $1,000 fee for residents to purchase a place in the columbarium, and a $1,500 fee for non-residents. Torgerson adjourned the open meeting of Council at 7:56 p.m. Council proceeded to a closed meeting for consideration of three items under Section 90 (1) (c) and (g) of the Community Charter to discuss matters related to: (c) labour relations or other employee relations, and (g) two items pertaining to litigation or potential litigation affecting the municipality. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
